Sutro Biopharma (NASDAQ:STRO) Coverage Initiated by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo initiated coverage of Sutro Biopharma with an “overweight” rating and a $49 price target, implying roughly 205% upside from the stock’s $16.05 price.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus “Buy” rating and an average price target of $49.50, despite one sell rating.
• Sutro recently missed quarterly expectations, reporting an adjusted loss of $2.33 per share versus the $2.19 consensus and revenue of $9.84 million versus $11.96 million expected.

Equities researchers at Wells Fargo & Company began coverage on shares of Sutro Biopharma (NASDAQ:STRO - Get Free Report) in a research note issued to investors on Wednesday. The brokerage set an "overweight" rating and a $49.00 price target on the stock. Wells Fargo & Company's price objective suggests a potential upside of 205.30% from the stock's current price.

STRO has been the subject of several other reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Sutro Biopharma in a report on Wednesday, August 5th. Wedbush reiterated an "outperform" rating and issued a $60.00 price target on shares of Sutro Biopharma in a research report on Thursday, August 13th. Truist Financial started coverage on shares of Sutro Biopharma in a research note on Thursday, June 11th. They set a "buy" rating and a $50.00 price target for the company. Stifel Nicolaus set a $48.00 price objective on shares of Sutro Biopharma and gave the stock a "buy" rating in a research report on Friday, August 7th. Finally, Citigroup restated a "market outperform" rating on shares of Sutro Biopharma in a research note on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $49.50.

Sutro Biopharma Stock Performance

Shares of STRO stock traded down $0.05 during mid-day trading on Wednesday, hitting $16.05. 2,899 shares of the stock were exchanged, compared to its average volume of 263,797. The stock's fifty day simple moving average is $20.58 and its two-hundred day simple moving average is $26.12. Sutro Biopharma has a 12-month low of $7.15 and a 12-month high of $43.85. The stock has a market capitalization of $266.13 million, a price-to-earnings ratio of -1.34 and a beta of 1.48.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported ($2.33) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.19) by ($0.14). The company had revenue of $9.84 million during the quarter, compared to analysts' expectations of $11.96 million. On average, research analysts expect that Sutro Biopharma will post -8.41 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sutro Biopharma

Several hedge funds have recently modified their holdings of STRO. Wellington Management Group LLP acquired a new position in shares of Sutro Biopharma during the 2nd quarter worth $359,000. Sigma Planning Corp purchased a new stake in shares of Sutro Biopharma in the first quarter valued at about $312,000. Bank of America Corp DE grew its position in shares of Sutro Biopharma by 348.1% in the first quarter. Bank of America Corp DE now owns 18,873 shares of the company's stock valued at $470,000 after purchasing an additional 14,661 shares during the last quarter. Stempoint Capital LP purchased a new position in shares of Sutro Biopharma during the 1st quarter worth approximately $580,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Sutro Biopharma during the 2nd quarter worth approximately $1,373,000. 96.99% of the stock is owned by institutional investors and hedge funds.

Sutro Biopharma Company Profile

Sutro Biopharma, Inc is a clinical-stage biopharmaceutical company focused on developing targeted cancer therapies. The company uses its proprietary XpressCF cell-free protein synthesis platform to design and manufacture antibody-drug conjugates (ADCs) and immunostimulatory antibody conjugates intended to selectively target tumor cells while limiting damage to healthy tissue.

Sutro's pipeline has included luveltamab tazevibulin, also known as luvelta or STRO-002, a folate receptor alpha-directed ADC being investigated for the treatment of ovarian and endometrial cancers.

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